AXA

Foreign insurers are preparing to make the most of the opening of the mainland's car insurance market, and they are mulling acquisitions. But experts say the road to a major presence in the market will be bumpy because of the dominance of big players.

French insurer AXA is looking to expand its footprint on the mainland through acquisitions, reflecting its upbeat outlook for the market in the coming decades. "In 30 years, China will be massive in our industry, and we want to be there for that growth," said Mike Bishop, the chief executive of AXA in Asia.

European insurer AXA is a step closer to becoming the largest foreign property and casualty insurer in China after agreeing to buy half of Chinese motor insurer Tianping Auto Insurance for 3.9 billion yuan (HK$4.9 billion).

As the complexity of investment decisions grows and Hong Kong becomes a maturing insurance market, the need for insurance consultants and financial planners who are well-trained and knowledgeable is on the rise.

After a deal that made it the city's largest general insurer overnight, AXA says it will look for similar buying opportunities to maintain its edge.

AXA, Europe's largest insurer and one of the largest life insurers in Hong Kong, last week bought HSBC's general insurance business in Hong Kong, Singapore and Mexico for US$494 million, in the largest such deal in the city.

HSBC Holdings yesterday sold its profit-making general insurance business in Asia and Latin America to French insurer AXA and Australian insurance group QBE to net US$914 million, marking the latest deal in its sale of non-core businesses.

Stuart Harrison, chief executive of AXA Hong Kong, said there would be no job or salary cuts as the company took HSBC staff on board.

HSBC may sell its general insurance operations in separate segments rather than as a single deal as final bidders French insurer AXA and US insurer ACE bargain to 'cherry pick' assets, according to sources familiar with the situation.

After graduating, Hill Yu Yee-fung (left) joined a US-based bank as an analyst. He left when a friend introduced him to the 'AXA Associates' professional training programme, aimed at shaping consultants. The AXA financial planner talks to Wong Yat-hei

Ipac Wealth Management Asia, a financial planning unit of French insurer AXA, will close its Hong Kong and Singapore offices in the first half because of the 'difficult economic climate over recent years'.

In a letter to its customers, Ipac chief executive Gary Harvey said AXA had reviewed its strategy in Asia and made the decision.

Management executive Marco Au Hon-lung (left) joined the workforce when he was 18. But later on, he decided to further his qualifications by obtaining a degree. After graduating, he worked as a customer engineer before his cousin, employed by AXA, introduced him to his current career as a financial adviser. Au talks with Wong Yat-hei